The Federal Perkins Loan is a low-interest (5%) loan made by a school (Campus-Based Aid) from funds provided by the federal government and contributed by the school. Perkins Loans are awarded to undergraduate students who have exceptional financial need. A Perkins Loan is a loan that has to be REPAID. The school is the lender, so the loan is repaid to the school or its servicer.

In order to apply for a Perkins Loan, the student must complete and submit the Free Application for Federal Student Aid (FAFSA) for the academic year he or she plans to attend, prior to the SIUC April 1st priority deadline date. A student is eligible to be considered for the Perkins Loan if they have a valid EFC on file in the Financial Aid Office by the deadline date; have exceptional financial need; have a minimum 2.00 GPA, have not already borrowed the maximum aggregate Perkins Loan amount; and are not ineligible for other reasons.

The amount of the Perkins Loan awarded will depend on the student's costs, Estimated Family Contribution, other financial aid, and the availability of Perkins funds at SIUC. No student may borrow more than $4,000 for each undergraduate year of study. There is a total Perkins Loan limit of $20,000 for undergraduate study.

An electronic Award Letter will be provided to eligible students offering a Perkins Loan. The student must accept or reject the Perkins Loan. If the loan is accepted, the student must complete and sign a Master Promissory Note and Borrowers Information Form and return it to the Financial Aid Office. The loan will then be credited to the student's SIUC account, divided into two payments for the academic year. The student will be required to participate in an Entrance Counseling session by accessing the Entrance Loan Counseling web page. The student can cancel the loan within 90 days of the date the school notifies the student that the loan has been credited to their account. No fees are charged to process a Perkins Loan. The 5% interest is not charged while the student remains in school on at least a half-time basis (or during the grace period or periods of deferment).

Under certain circumstances, payments on a Perkins Loan can be postponed by requesting a deferment or forbearance, or may be cancelled due to death, disability or certain other conditions. Reasons to grant a deferment may include being enrolled on at least a half-time basis at a postsecondary school; enrollment in an approved graduate fellowship program or approved rehabilitation training program; inability to find full-time employment (up to 3 years); economic hardship (up to 3 years) or certain types of volunteer service. A borrower should contact the SIUC Bursar's Office for more information on applying for deferments, forbearance or cancellation of Perkins Loans.